One of the simpler but more useful items for keeping a canned drink cool consists of a rectangular shaped insulating material that a user wraps around the outside of a canned drink to retard the flow of heat into the canned drink. A reusable attaching member located along the ends of the material permits the user to fasten the ends of the insulating material around the can and to each other to form a cylindrical holder that retards heat flow through the insulating material. One of the problems with the can holders is that the insulating material is bulky making it difficult for the user to carry the can holder from place to place. Generally the insulating material is too large and bulky to fit comfortably in a user's pocket. The present invention provides a combination cap and can holder that permits a user to carry the can holder in an out of the way location. I have discovered that since the can holder is light weight a user can attach a can holder to a cap and wear the cap with the can holder without causing any wearer discomfort. Should the wearer of the combination cap and can holder need the can holder to hold a chilled drink the user simply removes the can holder from the cap and places it around the canned drink. Once the drink is finished the user removes the can holder from around the canned drink and places it back on the cap for future use.